Continuing weakness in its European stores and disappointing bed sales saw Carpetright deliver a seventh profit warning in 18 months, despite signs of improvement in its UK floor covering business. Pre-tax profits for the year are now expected to be £3m-£4m down from previous guidance of £6m-£7m, and we still see no reason to own the shares.
IC TIP:
Sell
at
594p
Like-for-like carpet and laminate sales climbed 6 per cent in the fourth quarter, but overall like-for-like sales climbed more slowly, up 1.4 per cent as fewer customers bought insurance products. Overall sales slipped 4.2 per cent as a result of store closures and an 8 per cent sales slump in Europe, worsened by currency movements.